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Lottery winners welfare, A Michigan agency has removed more than 500 lottery winners from certain welfare programs because of a new state law that cross-references winners with recipients of some types of aid.

But the Department of Human Services says many more welfare cases could be ended if what it calls "loopholes" were closed, or if laws were altered or expanded.

The Department of Human Services on Monday issued a report that covers findings from April through December 2012.

It relates to a law signed last April that requires the state to match a list of those who win $1,000 or more in the lottery with current DHS assistance recipients.

Certain programs — including food assistance, cash assistance and some types of Medicaid programs — have established asset limits and testing of those assets.

But other welfare programs don't have asset testing — including certain child development and care programs, along with some types of Medicaid programs.
The Department of Human Services says that more than 2,000 cases involving lottery winners or other members of their household remain open because certain welfare benefits are not covered by asset tests.

"It's inconceivable that this is what the legislature had in mind when passing those laws in 2012," Maura Corrigan, Michigan's DHS director, said in a statement. "With the match system, we can now identify substantial winnings, but the loopholes that allow lottery winners to continue to collect various benefits need to be closed, through amending state and federal law and policy."

DHS officials said data indicates nearly 14 percent of all lottery winners are either welfare recipients themselves or reside in a household with welfare recipients. The report said 3,544 lottery winners identified as welfare recipients or residing with recipients between April 2012 and December 2012 accounted for more than $24 million in lottery winnings, an average of $6,800 per case.

A press release Monday from DHS said it "will advocate remedies" to make sure benefits from taxpayer-supported programs go to people who are "truly in need."

From the DHS statement: "To that end, DHS will seek changes in federal laws and policy where persons who 'purchase and prepare food separately' are considered distinct groups even though they reside in the same home, thus allowing a lottery winner to have an individual case isolated from other household members."

The change in Michigan law was sparked in part by news that a Bay County man continued to receive food assistance after winning $2 million in the "Make Me Rich!" Lottery game in 2010.